Many are more interested in meeting their current needs than saving for the future
Canadians are making their immediate financial goals a bigger priority than long-term investments, a poll by the Canadian Imperial Bank of Commerce (CIBC) has found.
The banking giant suggested Canadians seemed to favour the Tax-Free Saving Account (TFSA) instead of other accounts that serve as longer horizon investment vehicles such as the Registered Retirement Savings Plans (RRSPs).
About 57% of Canadians said they were more interested in meeting their current needs rather than saving for their future.
“The preference for short-term liquidity and stable returns suggests many Canadians are focused on today and less so on long-term accumulation of wealth or retirement,” said Carissa Lucreziano, vice president of financial and investment advice at CIBC.
“Planning for both short- and longer-term ambitions can help individuals move beyond their immediate needs and envision how they can live for today, save for the future, accumulating wealth over time to support their retirement years,” she added.
Over half of respondents admitted to either not being able to save money or not knowing if they are saving enough for their retirement. Around 57% were worried about running out of money in their retirement years and 31% said they delayed their plans for saving money for retirement because of inflation. Meanwhile, 23% said they have yet to start saving for their retirement.
The poll further found that 29 years old was the mean age for Canadians to begin saving up for their retirement years with 43% of RRSP holders already done contributing for the 2023 tax year. About a third of RRSP holders were planning not to contribute for 2024.
About 42% of investors were found to focus on achieving predictable returns instead of aggressive growth as the economy faced higher living costs, recessionary fears, and global uncertainty.
The data was gathered from a Maru Public Opinion online survey that involved Canadian adults who held or managed investments.
